Warner Bros. Discovery, symbolized as WBD, is on the cusp of unveiling Teen Torture, a compelling three-part documentary series under the direction of Tara Malone. This gripping exposé delves into the shadows of America’s “troubled teen” industry (TTI), set to launch on Jul 11.
Debuting on Max, the series peels back the layers of a billion-dollar enterprise predicated on the notion of “tough love” as a therapeutic measure, despite a troubling past marked by deaths, suicides, abuse, and psychological scars endured by its subjects. For over six decades, these facilities have operated with little oversight, protected by formidable forces.
This documentary chronicles the narratives of resilient survivors and truth-tellers who have come forward to confront the TTI, sparking a potent movement on social media in 2021. Through their visceral firsthand accounts, including those from prominent personalities like rap artist Bhad Bhabie, the series exposes the severe mistreatment and cult-like brainwashing endured by the youth in these institutions. Despite initial successes, the TTI persists, emboldened by entrenched influence, intent on withstanding scrutiny and reform.
Performance Overview
Image Source: Zacks Investment Research
WBD’s Content Strategy Driving Subscriber Growth
Warner Bros. Discovery boasts a diverse menu of fresh content, encompassing a blend of original series, films, and network premieres.
The Zacks Consensus Estimate projects a 8.6% year-over-year surge in WBD’s 2024 DTC subscribers to 106.13 million.
Exciting additions on the horizon include Max Originals like MILF of Norway and The Quad Gods, scheduled for a mid-July debut. Animation enthusiasts can anticipate releases such as Justice League: Crisis on Infinite Earths Part Two and the Max Original Kite Man: Hell Yeah!.
Further enriching the content slate is the Discovery Channel, featuring a captivating array of shark-themed documentaries like Jaws vs. Leviathan, Sydney Harbor Shark Invasion, and Great White Serial Killer: Sea of Blood. Accompanying these are other compelling shows such as Expedition Unknown: Shark Wrecks of WWII and Monster Hammerheads: Species X.
Noteworthy premieres also include Love Lies Bleeding from A24, the HBO Original documentary Charlie Hustle & The Matter of Pete Rose, and the CNN Originals series Secrets & Spies: A Nuclear Game.
However, despite the promising content lineup, the shares of this Zacks Rank #3 (Hold) company have plummeted by 36.7% year to date, contrasting with the Consumer Discretionary sector’s 1.7% decline, attributed to stiff competition from streaming giants like Netflix, Amazon, and Disney.
Citing a report by digital trends, Netflix leads the pack with 269.6 million global paid members, followed by Amazon Prime crossing 200 million, Disney+ with 153.6 million, and WBD at 99.6 million.
Key Takeaways
The vast content reservoir and future releases position Warner Bros. Discovery for growth.
Anticipated upticks in advertising spending offer a promising outlook for Warner Bros. Discovery.
In Q1, advertising revenues surged 70% ex-FX, buoyed by heightened engagement on Max in the U.S. following the B/R Sports launch on Max in October 2023, alongside ad-lite subscriber expansion.
The Zacks Consensus Estimate for WBD’s Q2 2024 loss per share stands at 16 cents, marking a 6 cents reduction in the past 60 days. The consensus for 2024 loss per share is slated at 38 cents, reflecting a 10 cents shrinkage in the 60-day period.
